Carter's urban policy in trouble over funding
The keystone of the Carter administration's urban policy collapsed in a congressional conference committee because of a dispute over spending for public-works projects. The bill would have increased the budget of the Economic Development Administration from $700 million to $1.2 billion during the next fiscal year. More important, it would have provided federal loans, loan guarantees, and interest subsidies to stimulate private investment in economically distressed communities. However, Congress is expected to clear a measure allowing the agency to continue spending at its current level through next year.